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Jackie 2
Returning Member

Sale of Rental Property

In this section I accidentally entered the sale price twice so I went back to try to remove incorrect entry.  When I selected EDIT, I was taken to a screen to add additional properties instead.   After trying several different choices on the additional property screens including None of the Above,  TurboTax took me back to the income screen. It looks like a loop I can't get past. 

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2 Replies
Carl
Level 15

Sale of Rental Property

Since you're using the online version of Self-Employed, this indicates to me that the rental stuff is "the first thing" you're dealing with here, and haven't entered any other data into the program. So It's not gonna kill you to clear the return, start over from scratch and import everything from the 2018 return again. With what I perceive as multiple screwups on  your part, starting over would be the best way to go. Trying to "fix" what you have could take all day, if not days.

On the left is a "tools" menu. Select that and look for the "clear and start over" option, and go that route. Then follow the guidance below for reporting the sale of your rental property.

Hopefully, you have not paid your TurboTax fees yet. If you have already, then the option to clear and start over is just flat out not possible. This is why you should not pay until you are ready to file.

Reporting the Sale of Rental Property

If you qualify for the "lived in 2 of last 5 years" capital gains exclusion, then when prompted you WILL indicate that this sale DOES INCLUDE the sale of your main home. For AD MIL personnel who don't qualify because of PCS orders, select this option anyway, because you "MIGHT" qualify for at last a partial exclusion.

Start working through Rental & Royalty Income (SCH E) "AS IF" you did not sell the property. One of the screens near the start will have a selection on it for "I sold or otherwise disposed of this property in  2019". Select it. After you select the "I sold or otherwise disposed of this property in 2019" you continue working it through "as if" you still own it. When you come to the summary screen you will enter all of your rental income and expenses, even it it's zero. Then you MUST work through the "Sale of Assets/Depreciation" section. You must work through each individual asset one at a time to report its disposition (in your case, all your rental assets were sold).

Understand that if more than the property itself is listed in your assets list, then you need to allocate your sales price across all of your assets.  You will only allocate the structure sales price; you will NOT allocate the land sales price, since the land is not a depreciable asset.  Then if you sold this rental at a gain, you must show a gain on all assets, even if that gain is $1. Likewise, if you sold at a loss then you must show a loss on all assets, even if that loss is $1

Basically, when working through an asset you select the option for "I stopped using this asset in 2019" and go from there. Note that you MUST do this for EACH AND EVERY asset listed.

When you finish working through everything listed in the assets section, if you ever at any time you owned this rental you claimed vehicle expenses, then you must also work through the vehicle section and show the disposition of the vehicle. Most likely, your vehicle disposition will be "removed for personal use", as I seriously doubt you sold your vehicle as a part of this rental sale.

 

 

Jackie 2
Returning Member

Sale of Rental Property

My return was all filled out and ready to file, but this section had a review flag on it.  I mistakenly re-entered the sales information and was locked out.  I have since filed an extension and paid what was initially shown by TT to be owed and cleared out all information with plans to see a local CPA after the crowd's rush to file by 7/15.

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